Sevan Group plans new company; tentatively orders rigs

By OGJ editors HOUSTON, Mar. 29 -- Norway’s Sevan Marine plans to organize a new company, Sevan Drilling ASA, to expand its ultradeepwater drilling rig business, and has ordered two semisubmersible drilling rigs, although the construction contract remains subject to the new company’s formation.

Sevan Marine expects to launch an initial public offering for Sevan Drilling during April. In connection with the IPO, Sevan entered into letters of intent with COSCO Shipyard in China to build two semisubmersible rigs with options for another two semis.

The two newly ordered rigs are scheduled for delivery in late-2013 and in second-quarter 2014. The turnkey contracts outline a price of $525 million/rig and options to build two additional semis. Finalization of the construction contracts remains subject to the listing of Sevan Drilling as an independent company on the Oslo Stock Exchange, Sevan Marine said.

The two semis on order are based on the same design as the Sevan Driller and the Sevan Brazil. The Sevan Driller operates in the Santos basin off Brazil for Petroleo Brasileiro SA under a 6-year fixed term charter. The Sevan Brasil is expected to be delivered from COSCO Shipyard in 2012 for a 6-year fixed term charter with Petrobras.

The Sevan Driller, the world’s first deepwater circular drilling rig, was designed to drill to 40,000 ft and in 12,500 ft of water. The rig has a 150,000 bbl of oil internal storage capacity and a variable deckload of more than 15,000 tonnes (OGJ, July 13, 2009, Newsletter).